MARKETING MANAGEMENT-I

ASSIGNMENT 1

Submitted by:

Group No. 1

SADDAM HUSSAIN- UR21045

SHIVAM GOSWAMI- UR21051
RAKSHITA SINGH- UR21041
BIJAY KUMAR - UR21018
5 C Analysis

COMPANY: JAAPI (Assamese Indigenous Name)

Company’s Logo

● Product: SAUBHAGYA GOLD (Mustard Oil)

CUSTOMER: Lower Assam Rural Sector Population

COLLABORATORS: 1. Procurement of raw materials from traders

2. Distribution of the final product through dealers

COMPETITORS: While analyzing our competition we are considering Porter’s 5 Forces:

 Intensity of Rivalry within the industry: The intensity of rivalry within the industry is
on a higher level after taken into consideration the existing indigenous oil brands
Anupam and Annapurna. We can say that the rivalry is purely revolving around the
product’s price sensitivity and quality.
 Threat of substitute products: Since our target section is the rural areas of assam and in
most of the households’ people prefer to consume mustard oil, so we can say the level of
threats from substitute product is relatively less. Though, in some scenarios when there is
any special occasion people do consider using refined oil as it becomes a cost effective
option for them at that point, but still it will be difficult to substitute mustard oil for daily
consumption.
 Threat of new entrant: As of now the threat of new entrant is negligible.
 Bargaining power of the supplier: To procure raw materials we have to go through
trade unions (middlemen) as there are a few farmers and directly procuring from each
farmer will be cost intensive for the company. Thus, the bargaining power of the
suppliers can be said to be high.
  Bargaining power of the customer or consumer: As the customer wants good product
in cheap price and our product is being launched keeping the needs of the customers.
Thus, we can say the bargaining power of customer is limited.

CONTEXT: PESTEL Analysis

● Political: As per the present Agri Business Scenario in Assam there is no such prominent
influence of any particular individual or group however there are certain involved which
affect pricing by charging ‘Chanda’ or illegal tax while entry to some particular
production regions.

● Economic: We divide the economic context into two categories: Customer Oriented and
Product Oriented (cost). Under customer-oriented part we are considering the economic
status of our customers and thus our target customers are the people from lower income
group or bpl category of the rural areas of the Lower Assam and under the product-
oriented part we are as we are going to set up our own production unit and source our raw
material locally, our product is going to be more cost effective. Since, we are focusing
less on advertising and more on cutting cost, this will give us an edge on the pricing in
the market and get people to choose our product over the competition because of lower
cost.

● Social: The household decisions are mostly taken by the women of the house in our
targeted area and they show a particular buying behavior to a specific product that they
are accustomed to buying. So, if we can get the Kirana Store owner (Retailer) to
influence the buying behavior of the women we can get hold of the market.

● Technological: Expeller and Kachhi Ghani are the different technological methods we
are using for production. The difference being the aroma percentage is more in Kachhi
Ghani compared to Expeller. Then proper filtration technology is required to get a refined
final product.

● Environmental: The environmental aspect can be divided into two parts - Internal and
External. In the internal environment we are planning on a highly automated system and
not labor intensive which will be a onetime investment and more effective compared to
human labor which has uncertainties attached to it. In an external environment we trader,
dealers, farmers, raw material quality, transportation cost etc. which play a vital role.

● Legal: Considering the legal aspect it's a very broad and complicated process right from
classification of land to getting the food license.
STP Model Analysis

SEGMENTATION: We are segmenting based on geographic and demographic segmentation.

Since we are a startup and a new entrant and have resource constraints, we are targeting some
specific districts of lower assam mostly pertaining to economically lower section to occupy the
market.

TARGETING: Our Target customer segments are the economically weaker section of the
society that will get attracted by the lower price segment we are introducing in the edible oil
market and will help us in getting hold of a handful of customers.

POSITIONING: We are working on this.